Blockchain Technology Set to Renew and Ease Ship Registration

Having to travel halfway around the world, which today is common practice when ships are traded, could become a thing of the past due to digitalisation. By using Blockchain technology, the Ministry of Industry, Business and Financial Affairs aims to significantly reduce administrative burdens in the maritime sector.

It was stated again and again by entrepreneurs, politicians and maritime-authority employees from various countries during last week’s Danish Maritime Days: Digitalisation of the maritime sector will change the world.

This also includes the ship trade and ship registration processes which often cross borders and time zones, making them complicated and time-consuming. In some instances, travel halfway around the world to sign a legal contract to finalize a deal may even be required. With Blockchain solutions such travels can be a thing of the past, thus saving ship owners both time and money.

Minister of Industry, Business and Financial Affairs, Brian Mikkelsen: ”Blockchain is an advanced technology with an enormous potential to reduce administrative burdens. It is important that Blue Denmark as a whole manages to develop new technologies so we can maintain our strong maritime position and make Denmark even more attractive as a flag state.”

The Danish Maritime Authority has therefore initiated an ambitious digitalisation project which aims at digitalising the ship trade and ship registration processes. The project is part of the governmental strategy to further digital growth in Denmark.

A key aim of the project is to make the above-mentioned processes easier and less burdensome than today when the administrative processes are largely paper-based. The project will make the Danish International Ship Registry the first digital ship registry in the world. The project is one of the first Blockchain projects in the Danish public sector. The project is expected to begin in 2018 and run until early in 2020.

Blockchain technology

The philosophy behind blockchain is security through openness. All those who are part of the “chain” will constantly have a full overview of the processes and nobody can secretly change or forge documents. Thereby, mortgage deeds or the like can be handled securely no matter whether you are in Copenhagen or in Singapore.